Class 12 CBSE 

ACCOUNTS is a Subject that includes both subjective content and objective questions. In order to understand Class 12 Accountancy, you need to have an in-depth understanding of concepts. In such a case Class 12 Accounts Course can be your go-to place.

Accounts for Class 12 is an enhanced level of Class 11. In previous classes, we study the basic fundamental aspects of the subject. In Class 12 it is an advanced degree of those concepts. 

Term 1 CBSE Class 12 Accountancy Syllabus and Marks Distribution 2021-22

Accountancy (Code No. 055) Class-XII (2021-22)

Theory: 40 Marks
Duration: 90 minute

Part A

Unit: Accounting for Partnership Firms Units/Topics

• Partnership: features, Partnership Deed.
• Provisions of the Indian Partnership Act 1932 in the absence of partnership deed.
• Fixed v/s fluctuating capital accounts. Preparation of Profit and Loss Appropriation account- a division of profit among partners, a guarantee of profits.
• Past adjustments (relating to interest on capital, interest on drawing, salary and profit-sharing ratio).
• Goodwill: nature, factors affecting and methods of valuation – average profit, super profit and capitalization.

Accounting for Partnership firms – Reconstitution

• Change in the Profit Sharing Ratio among the existing partners – sacrificing ratio, gaining ratio, accounting for revaluation of assets and reassessment of liabilities and treatment of reserves and accumulated profits. Preparation of revaluation account and balance sheet.
• Admission of a partner – effect of admission of a partner on change in the profit-sharing ratio, treatment o goodwill (as per AS 26), treatment for revaluation of assets and reassessment of liabilities, treatment of reserves and accumulated profits.

Note: (i) The realized value of each asset must be given at the time of dissolution. (ii) In case, the realization expenses are borne by a partner, a clear indication should be given regarding the payment thereof.

Unit-3 Accounting for Companies

Accounting for Share Capital

• Share and share capital: nature and types.
• Accounting for share capital: issue and allotment of equity and preferences shares. Public subscription of shares – over subscription and under subscription of shares; issue at par and at a premium, call in advance and arrears (excluding interest), issue of shares for consideration other than cash.
• Concept of Private Placement and Employee Stock Option Plan (ESOP).
• Accounting treatment of forfeiture and reissue of shares.
• Disclosure of share capital in the Balance Sheet of a company.

Part B: Financial Statement Analysis

Unit: Analysis of Financial Statements

Financial statements of a Company: Statement of Profit and Loss and Balance Sheet in the prescribed form with major headings and subheadings (as per Schedule III to the Companies Act, 2013)

• Financial Statement Analysis: Objectives, importance and limitations.
• Tools for Financial Statement Analysis: Comparative statements, common-size statements, cash flow analysis, ratio analysis.
• Accounting Ratios: Meaning, Objectives, classification and computation.
• Liquidity Ratios: Current ratio and Quick ratio.
• Solvency Ratios: Debt to Equity Ratio, Total Asset to Debt Ratio, Proprietary Ratio and Interest Coverage Ratio.
• Activity Ratios: Inventory Turnover Ratio, Trade Receivables Turnover Ratio, Trade Payables Turnover Ratio and Working Capital Turnover Ratio.
• Profitability Ratios: Gross Profit Ratio, Operating Ratio, Operating Profit Ratio, Net Profit Ratio and Return on Investment.

OR

Part B: Computerised Accounting

Unit: Computerised Accounting

Overview of Computerised Accounting System

• Introduction: Application in Accounting.
• Features of Computerised Accounting System.
• Structure of CAS.
• Software Packages: Generic; Specific; Tailored.

Accounting Application of Electronic Spreadsheet

• Concept of the electronic spreadsheet.
• Features offered by electronic spreadsheet.
• Application in generating accounting information – bank reconciliation statement; asset accounting; loan repayment of loan schedule, ratio analysis
• Data representation- graphs, charts and diagrams.

Term 2 CBSE Class 12 Accountancy Syllabus and Marks Distribution 2021-22

Accountancy (Code No. 055) Class-XII (2021-22)

Theory: 40 Marks

Part – A

Unit: Accounting for Not – For Profit Organisations

• Not-for-profit organizations: concept.
• Receipts and Payments Account:- features and preparation.
• Income and Expenditure Account: features, preparation of income and expenditure account and balance sheet from the given receipts and payments account with additional information.

Unit: Accounting for Partnership Firms

Accounting for Partnership firms – Reconstitution and Dissolution

• Retirement and death of a partner: effect of retirement/death of a partner on change in profit sharing ratio, treatment of goodwill, treatment for revaluation of assets and reassessment of liabilities, adjustment of accumulated profits and reserves and preparation of balance sheet.
• Calculation of deceased partner’s share of profit till the date of death.

Dissolution of a partnership firm: meaning of dissolution of partnership and partnership firm, types of dissolution of a firm. Settlement of accounts – preparation of realization account, and other related accounts: capital accounts of partners and cash/bank a/c (excluding piecemeal distribution, sale to a company and insolvency of partner(s)).

Unit – Accounting for Companies

Accounting for Debentures

• Debentures: Issue of debentures at par, at a premium and at a discount. Issue of debentures for consideration other than cash; Issue of debentures with terms of redemption; debentures as collateral security concept, interest on debentures. Writing off discount/loss on the issue of debentures.

Part – B:

Unit: Analysis of Financial Statements

Financial statements of a Company

• Tools for Financial Statement Analysis: Comparative statements, common-size statements.

Unit: Cash Flow Statement

• Meaning, objectives and preparation (as per 3 (Revised) (Indirect Method only)

OR

Part B: Computerised Accounting

Unit: Computerised Accounting

Using Computerized Accounting System

• Steps in the installation of CAS, codification and Hierarchy of account heads, creation of accounts.
• Data: Entry, validation and verification.
• Adjusting entries, preparation of balance sheet, profit and loss account with closing entries and opening entries.
• Need and security features of the system.

Database Management System (DBMS)

• Concept and Features of DBMS.
• DBMS in Business Application.
• Generating Accounting Information – Payroll.

Over the centuries, accounting has been conserved and limited to the monetary record-keeping pursuits of the accountant. However, the current day’s rapidly developing business environment has impelled the accountants to revise their representation and functions both within the enterprise and the association.